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FBI searches home of top FTX executive

April 28, 2023May 17, 2023 5amResearch No Comments

The FBI carried out a search on Thursday morning at the Potomac, Md., home of former FTX executive Ryan Salame, the New York Times reported, citing two people with knowledge of the matter said.

The FBI, Salame and his attorney did not immediately respond to Reuters requests for comment.

Days before FTX filed for bankruptcy and Bankman-Fried stepped down as CEO, Salame informed the Securities Commission of the Bahamas that client assets held at FTX Digital Markets may have been transferred to Alameda, according to a court filing Wednesday by the agency.

He was one of the top political donors in the 2022 election cycle donating more than $23 million to Republican campaigns, according to OpenSecrets.

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IRS Paid An “unannounced and unprompted” Visit to the Home of journalist Matt Taibbi the Same Day he Testified to Congress About Government Abuse

April 1, 2023June 7, 2023 5amResearch No Comments

The Committee has learned that while Mr. Taibbi was describing his findings of government abuse and civil liberties violations, an IRS revenue officer appeared at Mr. Taibbi’s personal residence in New Jersey — leaving a note for Mr. Taibbi to call the IRS four days later. When Mr. Taibbi called the IRS, the IRS informed him that the reason for the visit was because his electronic 2018 and 2021 tax return filings had been rejected due to concerns of identity theft.

According to Mr. Taibbi, the IRS notified his accountant that the IRS had accepted his 2018 filing, and in the four-and-a-half years since then, the IRS has never notified Mr. Taibbi or his accountant of any issue with this return — until the day he was testifying before Congress. With respect to his 2021 return, the IRS rejected Mr. Taibbi’s electronic filing twice, even after his accountant filed with an IRS-provided pin number. In both cases, the IRS informed Mr. Taibbi after the agency visited his home that the problems were not “monetary”; in fact, the IRS apparently owed Mr. Taibbi a “considerable” tax return.

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Deutsche Bank Stock Tumbles On Contagion Fears

March 24, 2023May 17, 2023 5amResearch No Comments

After a relatively calm week in banking, Deutsche Bank is now making headlines for a falling share price and rising CDS spreads.

In an apparent attempt to show strength, the company announced that it would redeem a bond issue early, but the market had other ideas.

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Wall St falls as bank contagion fears flare up

March 24, 2023May 17, 2023 5amResearch No Comments

Shares of major U.S. banks such as JPMorgan Chase & Co, Wells Fargo and Bank of America dropped between 1% and 2% in early trade.

Shares of regional lenders First Republic Bank, PacWest Bancorp, Western Alliance Bancorp and Truist Financial Corp fell between 1% to 5%.

The S&P 500 banking index and the KBW regional banking index, hit their lowest since late 2020 in the previous session, fell 1.6% and 1.2%, respectively.

European banks also came under pressure after a report on a U.S. probe into Credit Suisse and UBS further soured the mood. Their U.S.-listed shares were down about 5.4% and 4.1%, respectively.

U.S. shares of Deutsche Bank fell nearly 10% after the bank’s credit default swaps rose to a four-year high.

U.S. two-year Treasury yields fell sharply to their lowest levels since September on Friday.

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US due diligence firm Mintz Group says staff detained in China after office raid

March 24, 2023May 26, 2023 5amResearch No Comments

U.S. corporate due diligence firm Mintz Group said on Thursday its Beijing office was raided by authorities and five Chinese staff were detained, stoking worry among foreign companies in China just as its capital hosts an international economic forum.

News of the raid and detentions comes as Sino-U.S. relations have spiraled downwards following months of diplomatic tensions, including over the U.S. military downing in February of a suspected Chinese spy balloon and a planned U.S. transit next week by the president of Taiwan, the self-governed island China claims as its territory.

“We can confirm that Chinese authorities have detained the five staff in Mintz Group’s Beijing office, all of them Chinese nationals, and have closed our operations there,” the company said in an emailed statement to Reuters.

The company said it was ready to work with Chinese authorities to “resolve any misunderstanding that may have led to these events”, and that its top concern was the safety and wellbeing of colleagues in China.

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Credit Suisse, UBS facing US Russia-sanctions probe, subpoenas also sent to employees major US banks

March 24, 2023May 26, 2023 5amResearch No Comments

Credit Suisse Group AG and UBS Group AG are among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter.

The Swiss banks were included in a recent wave of subpoenas sent out by the US government, the people said. The information requests were sent before the crisis that engulfed Credit Suisse and resulted in UBS’s proposed takeover of its rival.

Subpoenas also went to employees of some major US banks, two people with knowledge of the inquiries, said.

The Justice Department inquiries are focused on identifying which bank employees dealt with sanctioned clients and how those clients were vetted over the past several years.

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Japan’s Offshore Anxiety: Foreign bonds bank run

March 23, 2023May 17, 2023 5amResearch No Comments

The crisis at Credit Suisse has traders wondering who’s next. Japanese lenders, with their staid depositor bases, look like unlikely targets for bank runs. Yet their collective overseas bond portfolio is in focus.

For years the country’s ultra-low interest rates encouraged deposit-taking institutions, lenders and other investors to borrow yen and buy higher-yielding but relatively safe assets. This helped Japan overtake China as the top foreign owner of U.S. Treasuries in 2019; they owned an estimated $2 trillion of foreign bonds as of last year. On paper the sequence of rate hikes in Western economies make such positions even more profitable.

Yet the rising cost of short-term dollar and euro credit, combined with extreme yen volatility, have made hedging much more expensive. The inversion of the American yield curve makes it unprofitable to borrow short-term dollars and buy long-term Treasuries. Japan Inc was reducing positions well before Silicon Valley Bank imploded.

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US court orders German stock operator Deutsche Börse subsidiary Bank Markazi to turn over Iranian assets

March 23, 2023May 26, 2023 5amResearch No Comments

Frankfurt (dpa) – A US court has ordered German stock operator Deutsche Börse’s Clearstream subsidiary to turn over about $1.7 billion in assets held by Iran’s central bank, Bank Markazi.

The court decision comes as part of a long-running US legal case in which victims of a terrorist attack 40 years ago have sought compensation from Iran. Clearstream said it is considering an appeal of the decision.

The assets are held in a customer account in Luxembourg by Clearstream, a wholly owned subsidiary of the German stock exchange operator. The company announced on Wednesday evening in Frankfurt that those suing Iran were granted a right to the assets attributed to the Iranian central bank held in a customer account at Clearstream.

Iranian-held assets at Clearstream, which manages securities on behalf of customers and handles purchases and sales, have been frozen on suspicion of terrorist financing and locked in several legal disputes for a number of years.

According to Deutsche Börse, that case remains pending but Clearstream maintains it is without merit.

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Malaysia debates allowing cash-strapped citizens to use pension funds as loan backstop

March 23, 2023May 14, 2023 5amResearch No Comments

PM Anwar says the loan option allows quick financing without members dipping into their pensions but analysts say loan applicants already face high default risk
Anwar has been under pressure for a fresh round of withdrawals from the pension fund, after his predecessors allowed four rounds of withdrawals in 2020-2022

Malaysia’s government needs to carefully weigh the risks of allowing members of a national private pension fund to use their savings as “support” to secure personal loans, experts have said, as Prime Minister Anwar Ibrahim pushes ahead with the plan to help households in financial distress from the Covid-19 pandemic.

Anwar this week defended the move, saying that it was one of several measures that the government is considering to help households get back on their feet without allowing further withdrawals from the Employees Provident Fund (EPF), as had been done during the pandemic years.

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